In this report, an analysis of the Skagen Designs company and their recent international expansion. We will speak about possible new market extension, we will argument our choices, and we will explain how Skagen Designs will enter those new markets.
We will also examine others product lines, we will explain how we choose future sponsor partners, and finally we will take a look at the opportunities and threats of the Internet and the e-commerce.
Question 1: What screening criteria should Skagen Designs use in connection with its choice of new markets for its watch collection?
There are a lot of different criteria that can be used in order to segment the “international market”. However, all …show more content…
For Skagen Designs, innovation is one of its key success drivers and the company is well-aware of it. In direct relationship with this, one criteria of segmentation that could be interesting is the criteria of ‘Attitudes and tastes’. People can have different attitudes toward products across country and the trend may not be the same. Therefore, as Skagen Design is focusing on the design and the appeals of its watches in order to make people by them, this criterion should be taken into account by the company. This is what we could call ‘similarity of markets’.
Cultural characteristics: Another criterion could also be the ‘Cultural characteristics’ of customers. Here, one interesting criteria could be the importance of ‘time’ for the population. Indeed, from one country to another, customers have a different vision of the importance of time, and more precisely of the importance of being on time. Therefore, this difference of attitudes towards time could impact the buying behaviors of customers. Those who don’t care about time would not buy as many watches as those who put more importance on being on time.
In conclusion, we could say that the most important criteria for Skagen Designs watches are those which are linked with their customers’ attitudes and characteristics: * Attitude and tastes (link with products “innovativeness” and market similarity) * Cultural characteristics – time (link with the product and buying behavior of people)